Renting to Family Member

mumcoll

My brother in law has offered to rent his house to my mum for less than the market rent. There is no tenancy agreement and he doesn't want a deposit. He will store some of his furniture there as mum won't need all the rooms.

Is he doing her a favour and does he have any legal obligations as he is family? She is giving up an assured tenancy with a housing association.

Thanks for any advice

J_i_m

I would imagine most people's advice would be "don't do it".

Rambosmum

Despite there being no written agreement, there will be a tenancy and your mum will have all the rights of a tenant. If your mum gets housing benefit/ housing allowance she will need a written agreement to claim for that and would be liable for 'bedroom tax' if applicable. BIL will need to declare the income to hmrc and will need to notify his mortgage company if he has one. It sounds like your BIL hasn't a clue what he's letting himself in for as a landlord and that could cause issues in the future especially re repairs and vacating.

HappyMJ

mumcoll wrote: »

My brother in law has offered to rent his house to my mum for less than the market rent. There is no tenancy agreement and he doesn't want a deposit. He will store some of his furniture there as mum won't need all the rooms.

Is he doing her a favour and does he have any legal obligations as he is family? She is giving up an assured tenancy with a housing association.

Thanks for any advice

She'd be mad to give up an assured tenancy with a housing association.

HappyMJ

Rambosmum wrote: »

Despite there being no written agreement, there will be a tenancy and your mum will have all the rights of a tenant. If your mum gets housing benefit/ housing allowance she will need a written agreement to claim for that and would be liable for 'bedroom tax' if applicable. BIL will need to declare the income to hmrc and will need to notify his mortgage company if he has one. It sounds like your BIL hasn't a clue what he's letting himself in for as a landlord and that could cause issues in the future especially re repairs and vacating.

No such thing as "bedroom tax" and what you might be referring to as the under occupancy charge is only for social housing tenants and does not apply to a private rental.

mumcoll

Mum isn't on HB and BIL is, shall we say, a bit of a wide boy. I just hope it's all above board and Mum is safe and secure. I have voiced my concerns but she isn't listening.
Thanks for the replies .

missbiggles1

mumcoll wrote: »

Mum isn't on HB and BIL is, shall we say, a bit of a wide boy. I just hope it's all above board and Mum is safe and secure. I have voiced my concerns but she isn't listening.
Thanks for the replies .

It might be all above board (although I'm afraid I doubt it) but your mum is never going to be safe and secure in a private rental compared to SH. Your brother could give her 2 months' notice at any time and she's unlikely to be offered SH again. Even if he's honest in his intentions, any change of circumstances (redundancy/debt/divorce/death) could lead to the house being sold and your mum losing her home.

HappyMJ

mumcoll wrote: »

Mum isn't on HB and BIL is, shall we say, a bit of a wide boy. I just hope it's all above board and Mum is safe and secure. I have voiced my concerns but she isn't listening.
Thanks for the replies .

Warn her that she'll find it next to impossible to regain a housing association property. She'll be at the bottom of the list and will not get a property with such a secure tenancy ever again and will be at the mercy of private landlords forever, say that being an old age pensioner trying to get a private rental, not being in employment and relying on a pension is very hard.

When I was looking for a private rental I had landlords completely turn me down before even having a look at a property despite having an income of my own from pensions and working from home doing part time self employment but because I don't have a full time employed job so they just said "not interested".

missbiggles1

HappyMJ wrote: »

Warn her that she'll find it next to impossible to regain a housing association property. She'll be at the bottom of the list and will not get a property with such a secure tenancy ever again and will be at the mercy of private landlords forever, say that being an old age pensioner trying to get a private rental, not being in employment and relying on a pension is very hard.

When I was looking for a private rental I had landlords completely turn me down before even having a look at a property despite having an income of my own from pensions and working from home doing part time self employment but because I don't have a full time employed job so they just said "not interested".

We don't know that she's a pensioner.

Poppie68

mumcoll wrote: »

Mum isn't on HB and BIL is, shall we say, a bit of a wide boy. I just hope it's all above board and Mum is safe and secure. I have voiced my concerns but she isn't listening.
Thanks for the replies .

Your mother would be bonkers to accept the offer as from what you say your BIL is on HB , is this for the same property he is willing to rent out to you mother? So he will be sub letting, receiving HB and rent off your mum?
Is this a private let or council/ assoc property? This could see your mum on the street and on the bottom of any waiting list.

teddysmum

Another possible reason to lose her home is a simple argument between mum and brother-in-law. Most families have differences of opinion now and then; in this case the outcome being catastrophic for the lady.


It's so easy, while in a mood , to say, 'You're out!'